U.S. Markets

U.S. stocks ended lower on Tuesday as retail sales raised doubts about the economic recovery. Energy and basic materials equities led the way downward, albeit in moderate trading volume.

The Dow Jones Industrial Average fell 41.55 points, or 0.34 percent, to close at 12,226.64. The S&P 500 Index tumbled 4.31 points, or 0.32 percent, at 1,328.01. The Nasdaq Composite Index shed 12.83 points, or 0.46 percent, at 2,804.35.

US retail sales rose less than expected in January, but recorded a gain for a seventh consecutive month. Retail and food services sales in the US rose 0.3 percent to $381.6 billion in January compared with the revised figure of 0.5 percent increase in December last year. Core retail sales, excluding motor vehicle and parts, rose 0.3 percent against the economists’ expectations of 0.6 percent increase.

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Jds Uniphase Corp. (NASDAQ:JDSU) shares plunged 10.18 percent after the company stock was downgraded to a “market perform” rating from “outperform” at Bernstein.

NYSE Euronext (NYSE:NYX) dropped 3.37 percent after it agreed to merge with Deutsche Boerse to create the world's largest exchange operator.

The euro gained 0.04 percent to 1.3492 against the dollar and the yen gained 0.04 percent against the greenback. Crude oil futures rose 0.19 percent to $84.48/barrel and gold futures fell 0.04 percent.

European Markets

European stocks ended modestly higher on Tuesday as strong earnings from Barclays PLC and Danone SA offset lackluster economic data.

The Stoxx 600 advanced 0.11 percent to 289.44, its highest level since September 2008. DAX30 up by 3.41 points or 0.05 percent to 7,400.04 and CAC 40 advanced 13.72 points or 0.33 percent 4,110.34, while the FTSE 100 ended down 0.38 percent to 6,037.08.

Barclays surged 5.8 percent after the bank said its full-year net income rose to 3.6 billion pounds ($5.77 billion) against analysts’ estimation of 3.2 billion pounds, as its banking profit almost doubled and writedowns shrank.

Shares of Danone SA gained 3.3 percent to 45.42 euros after the company said its full year profit rose 18 percent on sales of Aqua bottled water and Dumex infant formula in Asia.

Asian Markets

Asian stocks ended mixed on Tuesday as investors digested news that China’s inflation rate remained elevated in January as food prices continued to rise.

Tokyo shares ended higher with the key Nikkei index up 0.20 percent. The benchmark Nikkei 225 Average advanced 21.13 points to 10, 746.67 to log a 10-month closing high.

The Bank of Japan raised its overall economic assessment for the first time in nine months as faster overseas growth bolsters exports and production. “Japan's economy is gradually emerging from the current deceleration phase,” the bank said after its two-day monetary policy meeting.

China's shares ended flat and Hong Kong shares declined despite lower-than-expected inflation data from China. Bench mark Shanghai composite gained 0.02 percent or 0.49 points to 2,899.62, while Hong Kong’s Hang Seng declined 0.96 percent or 221.28 points to 22,899.78.

The consumer price index (CPI) in the world’s second largest economy increased to 4.9 percent in January year-on-year, while analysts had expected the China’s CPI to exceed 5 percent in January as a result of rise in consumption during Lunar New Year holiday and the severe drought in northern region of the country.

South Korean shares ended lower after volatile trade as gains from LG Electronics offset by declines from banks including KB Financial Group and automakers including Hyundai Motor. Benchmark Seoul composite declined 4.07 points or 0.2 percent to 2,010.52. KB Financial declined 1.87 percent and Hyundai Motor fell 1.37 percent, while LG Electronics gained 2 percent.

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